SC asks why RJio shouldn't pay AGR dues for using R Com spectrum

The Supreme Court Friday sought the details of spectrum sharing pact between Reliance Communications (RCom) and Reliance Jio and said as to why the company using the spectrum of the other firm cannot be asked to pay the Adjusted Gross Revenue (AGR) related dues to the government.

Spectrum is a government property, not private, and anyone using it is liable to pay the dues, the apex court said. A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah asked the counsels for Reliance Jio and RCom to place their spectrum sharing agreements on record.

The bench also asked the Department of Telecom (DoT) to file the requisite documents in this regard and posted the matter for further hearing on August 17.

The top court asked the DoT to place on record the details regarding the use of spectrum of other telecom companies, including Aircel, which are facing proceedings under Insolvency and Bankruptcy Code (IBC).

During the hearing, senior advocate Shyam Divan, appearing for resolution professional for RCom, said that the government has been informed about the spectrum sharing agreement which was done in 2016 and the required fees have been paid.

He said that a part of the spectrum was lying idle with the company for a while and it has not traded, but has only shared it.

The bench then said as to why it cannot ask Reliance Jio to pay the AGR related dues on behalf of RCom as the outstanding amount arises from the spectrum use and Jio has been using it for three years.

When Divan stated that the lenders have approved UV Asset Reconstruction Company's resolution plan for RCom, the bench said it wanted to know who was backing UV ARC.

Senior advocate KV Vishwanathan, appearing for Jio, said that the company has already paid its AGR related dues but on this question he needs to seek instruction.